60 Minutes Looks At Oil Speculation In 2008

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And they find that the folks who were trying to make a quick buck were affecting oil prices far more than the normal market forces of supply and demand.

Gee, that sounds oddly familiar…

Last year I argued time and time again that the energy speculators were the cause and that supply and demand couldn’t cause such massive price hikes. And yet some of you continued to fight me on it and claim that this was a result of market forces.

Well, here we are and I’m guessing you’ve watched the story above by now.

However, I’m completely uninterested in who’s right and who’s wrong. What I’m interested in is a fix so this doesn’t happen again.

I think it’s pretty obvious that allowing speculators to enter into this game is extremely damaging to both our short and long term goals. I’m not suggesting we should abolish the commodities market, but what I am saying is that we should only allow companies that can actually use the oil to purchase the contracts. I don’t think that’s an unreasonable notion, and I hope that’s some common ground we can agree on.